Financial Data and Key Metrics Changes - The company reported a revenue growth of 12% year over year, reaching $28.3 million in Q1 2025, driven by solid new sales and renewal activity [4][15] - Adjusted EBITDA grew 50% year over year to $4.5 million, highlighting operational leverage and a profitable growth strategy [4][17] - GAAP net loss was approximately $1.5 million, or a loss of $0.12 per share, compared to a net loss of $2.9 million in the prior year [19] Business Line Data and Key Metrics Changes - The renewal of two contracts with the New York City Police Department contributed approximately $3.5 million in catch-up revenue [4][16] - The company went live with four new cities and one expansion in the quarter, indicating growth in the ShotSpotter deployment [5] - Resource Router is currently deployed in over 20 agencies, more than double its installed base in less than 18 months [10] Market Data and Key Metrics Changes - The company is seeing strong demand for its capabilities in the public safety technology space, particularly in healthcare and casino verticals [11][25] - The international ShotSpotter pipeline is robust, with a new deployment in Niteroi, Brazil, marking a return to a strategically important market [5][67] - The company expects accelerated traction with ShotSpotter internationally in the second half of 2025 and early 2026 [6] Company Strategy and Development Direction - The company is focused on expanding its platform and data aggregation capabilities to position itself as a leader in public safety technology [3] - The introduction of SafePoint aligns with new legislation in California requiring hospitals to deploy weapon protection systems by 2027, creating a significant market opportunity [11][12] - The company is investing in AI capabilities to enhance its product offerings and operational efficiency [18][71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of their offerings and the differentiated value they bring to customers, particularly in light of recent contract renewals [7][8] - The company remains vigilant about headwinds related to municipal funding and budgets but believes it is well-positioned to drive revenue and ARR growth for 2025 [13][21] - Full-year revenue guidance is reaffirmed at $111 million to $113 million, with adjusted EBITDA margin guidance slightly reduced to 20% to 22% [20][21] Other Important Information - The company ended Q1 2025 with $11.7 million in cash and cash equivalents, significantly higher than the $5.7 million at the end of 2023 [20] - The company repurchased 33,493 shares at an average price of $15.04 for approximately $504,000 in Q1 2025 [20] Q&A Session Summary Question: How does the company manage the pipeline across its broader suite of tools? - Management indicated that each product solution has its own pipeline metrics, with a solid pipeline across the platform, particularly in Resource Router and Crime Tracer [23] Question: What early feedback has been received on the revamped SafePoint product? - Management reported success in the healthcare vertical, with proof of concept deployments underway in major healthcare chains [25][26] Question: Are meaningful bookings expected from Plate Ranger this year? - Management indicated a significant amount of pipeline exists, with actual bookings expected to be around $1 million, with revenue anticipated to increase next year [29][30] Question: What is the expected sales cycle for SafePoint given the 2027 requirement? - Management noted that the opportunity for SafePoint is more of a 2026 opportunity, with traction being made in other markets [38][40] Question: How does the company view the impact of the New York contracts on gross margins? - Management explained that additional expenses in Q1 impacted adjusted EBITDA, but the New York contracts contributed positively to the bottom line [42][44] Question: What is the estimated number of facilities required to comply with the new California law? - Management estimated about 400 hospitals in California would need to comply, translating to approximately 4,000 lanes needing protection [56][58] Question: What is the pricing model for SafePoint compared to traditional solutions? - Management stated that SafePoint charges about $20,000 per year per lane, which is competitive compared to traditional solutions [60] Question: What are the international expansion plans? - Management highlighted ongoing discussions for expansion in Brazil and other Latin American countries, with a focus on significant pricing leverage in international markets [66][68]

Financial Data and Key Metrics Changes - First quarter revenue reached $604 million, representing a 31% year-over-year increase, marking the thirteenth consecutive quarter of over 25% growth [26][27] - Adjusted EBITDA margin was reported at 25.7%, with annual recurring revenue (ARR) of $1.1 billion, reflecting a 34% year-over-year increase [26][27] - Adjusted gross margin improved to 63.6%, up 40 basis points year-over-year, primarily due to a shift towards software [28] Business Line Data and Key Metrics Changes - Software and services revenue increased by 39% year-over-year to $263 million, driven by strong demand for digital evidence management and premium add-ons [27] - Connected devices revenue grew by 26% year-over-year to $341 million, fueled by sales of TASER 10 devices and cartridges [28] Market Data and Key Metrics Changes - International bookings showed strong momentum, with demand noted in Australia, Latin America, Canada, Asia, the UK, and Europe, contributing to the top 10 international deals in the quarter [22] - Emerging verticals, including corrections and justice, experienced triple-digit growth, while enterprise markets are building a strong pipeline [23] Company Strategy and Development Direction - The company is focused on building an ecosystem for public safety, integrating various technologies and partnerships to enhance community safety [12][14] - The new AI Era Plan aims to provide predictable pricing and access to innovative AI solutions, enhancing the company's product offerings [8][12] - The company is committed to maintaining its headquarters in Arizona, overcoming legislative hurdles to support long-term growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline and bookings for the remainder of 2025, anticipating record annual bookings [21][31] - The company is prepared to navigate macroeconomic challenges, with minimal headwinds reported in key markets [47] - Future guidance for 2025 includes revenue expectations in the range of $2.6 to $2.7 billion, reflecting a 27% growth rate at the midpoint [31] Other Important Information - The company has updated its segment reporting to better align with its diversified product offerings, now categorizing them into connected devices and software and services [26] - Tariff impacts are expected to affect adjusted EBITDA margin guidance by approximately 50 basis points for the full year, but no price increases are planned for customers [30] Q&A Session Summary Question: What drove the strong ARR growth in Q1? - Management indicated that the strong ARR growth was primarily driven by robust bookings from Q4, with contributions from both new users and existing customers upgrading to premium plans [38][39] Question: What factors are contributing to international growth? - The company noted improved focus on international markets, enhanced execution, and a diverse product adoption strategy as key drivers of international growth [40][41] Question: Are there any macroeconomic concerns affecting demand? - Management reported virtually no headwinds in US state and local markets, although federal opportunities are somewhat stalled pending budget clarity [47][49] Question: How is the company addressing the fixed ALPR market? - The company is excited about entering the fixed ALPR market, leveraging existing relationships and technology to provide competitive offerings [102] Question: What is the outlook for federal opportunities? - The company is focusing on border security technologies and real-time video solutions, anticipating significant demand in these areas [83][84]